In theory, bank loans can be an effective way for gyms to manage cash flow pressures and settle urgent expenses such as payroll, equipment purchases and repairs, and rent.
However, from our experience talking to gym owners, securing a bank loan is rarely a smooth or stress-free process. Many gym owners approach us saying they applied for a bank or SBA loan, waited 60 to 90 days for approval, only to be rejected at the last minute and have to start over with another bank.
Long wait times and last-minute rejections are common because of the extensive lending requirements that banks and most lenders have for gyms. Banks require near-perfect credit, large profit margins, strong collateral, extensive cash reserves, low debt-to-income, and more.
Underwriting all these factors takes 60 to 90 days, and if issues are identified late on, it can lead to last-minute rejections.
To help gym owners and fitness business entrepreneurs secure reliable financing without last-minute drama and complications, we wrote this guide comparing 7 business loan options for gyms.
The best funding options should have minimal requirements so they can evaluate and underwrite your application quickly and say if you qualify immediately after you apply. You shouldn’t have to wait months only to receive a rejection letter.
Use our automated business loan calculator to see what interest rates and loan amounts your gym qualifies for.
| Funding Features | Redline Capital | Other Lenders |
| Eligibility requirements | $30,000 in monthly revenue, one year in business, and U.S.-based | Near-perfect credit, large profit margins, low debt-to-income, cash reserves, collateral, no prior judgments or liens, and more |
| Paperwork requirements | A 4-month bank statement | Financial statements, tax returns, cash flow forecasts, business plans, equipment lists, and more |
| How quickly can they fund? | On the same day you apply | Within 60 to 90 days of applying |
| Do you need collateral or cash reserves? | No | Most of the time |
| Can you qualify with bad credit? | Yes | No. Most lenders require near-perfect credit |
| Do they reject your application at the last minute? | Never. We give you a concrete yes-or-no answer within hours of submitting an application | Yes. This is very common |
1. Revenue-Based Financing: Same-Day Funding Based on Your Gym’s Revenue
Revenue-based financing is approved primarily on your gym’s monthly revenue rather than your credit score, profit margins, cash reserves, or debt-to-income ratio.
This approach recognizes that gyms can generate strong revenue even during challenging periods, making it a more realistic way to evaluate gyms than the business model assessments traditional banks perform.
For gym owners, this offers three significant advantages over traditional financing:
- No last-minute rejections: Since approval is based on your revenue, you just need to meet the lender’s monthly revenue requirement to qualify. At Redline Capital, that’s $30,000 per month. You don’t have to meet the strict bank criteria around profit margins, cash reserves, or debt-to-income ratio. This allows us to underwrite your application in 1 to 2 hours and move to closing immediately after you apply.
- Fast funding: The only paperwork you need is a few months of bank statements showing you meet the revenue threshold. Less paperwork means faster approval and funding. For example, Redline Capital only asks for a 4-month bank statement, and our clients regularly close on the day they apply.
- Lower interest rates: Because revenue-based financing doesn’t penalize gyms and fitness centers for factors like seasonal fluctuations, membership churn, or thin profit margins that are normal in the fitness business, you can qualify for lower interest rates than most alternative financing products.
Read more: Why Use Revenue-Based Financing Instead of Debt Financing?
How to Apply for Revenue-Based Financing and What Paperwork to Prepare
Our application process is designed to be as fast and straightforward as possible:
- Submit 4 months of bank statements and complete a short application asking for basic information about your gym, such as your monthly revenue and desired loan amount. No tax returns, profit and loss statements, financial projections, or other financial documents required.
- We evaluate your application and business bank statements, run a soft credit check, and email you multiple revenue-based financing offers you’re approved for. Each offer details the loan amount, factor rate, and repayment terms tailored to your gym’s unique needs.
- Select the offer that best fits your gym’s financing needs. At this stage, we recommend shopping around and comparing offers, and you’re welcome to go with another lender if they offer better rates and terms. That said, in our experience, borrowers most often choose us because of the quality of our offers.
- Immediately after you accept, you receive the funds in your bank account via wire transfer or ACH deposit.
Types of Revenue-Based Financing Products for Gyms
There are three main types of revenue-based financing products that work well for fitness businesses and fitness centers:
- Working capital loans are short-term, lump-sum financing ranging from 6 to 24 months, perfect for covering immediate expenses like payroll, hiring staff, rent, equipment maintenance, or marketing campaigns during seasonal slowdowns.
- Term loans offer larger loan amounts up to $2 million with longer repayment periods, typically 1 to 3 years. These are ideal for significant gym investments like new equipment purchases, facility renovations, startup costs for a new gym location, or expansion into additional fitness center locations.
- Business lines of credit provide revolving credit that works like a business credit card. You can access a set amount of funds, repay only what you use, and as you pay down the balance, your credit is replenished automatically. This flexibility is particularly valuable for fitness businesses that face seasonal revenue fluctuations.
Read more: How Does Revenue-Based Financing Work?
Why Redline Capital?
You Get Lower Interest Rates and Better Terms with Us Than Other Providers
Many gym owners and fitness entrepreneurs assume that applying directly to a lender guarantees better rates. However, high-quality brokers like Redline Capital can help you secure exclusive rates and terms through our relationships with premium business lenders.
We’ve generated hundreds of millions of dollars in loan applications for OnDeck, Rapid Finance, Headway Capital, and other lenders over the past decade. In return for this consistent business, these lenders offer our applications preferred pricing, wholesale rates, and discounts that aren’t available when gym owners and small business owners apply directly.
When you apply through Redline Capital, you’re drawing on all the business we’ve sent to our lending partners to secure better terms for your gym. Additionally, we can leverage competing offers to negotiate with lenders, often securing lower interest rates even lower than their initial proposals.
We Have Extensive Experience Working with Gyms and Fitness Businesses
We always recommend working with a lender who knows the fitness industry, as certain traits that might raise red flags for outsiders are completely normal within the space.
For gyms and fitness centers, these include seasonal membership fluctuations, higher churn rates during certain months, and the need for ongoing equipment investments like treadmills and cardio machines to stay competitive. Lenders without fitness business experience may view these as red flags and charge higher interest rates.
At Redline Capital, we’ve been working with gym owners and fitness entrepreneurs for over a decade. We understand that membership revenue can fluctuate seasonally, that equipment financing is an ongoing need, and that successful fitness centers often operate on lean margins. We won’t penalize you with higher interest rates for industry-standard business patterns.
We Handle Ourselves with Professionalism
One of the biggest problems in the alternative lending space is aggressive, high-pressure sales tactics. Many lenders will bombard gym owners and small business owners with calls and emails, pressuring them to accept expensive offers before they apparently expire.
At Redline Capital, we take a completely different approach. We present you with multiple financing options tailored to your gym’s unique needs and give you the time and space to make the decision that’s right for your fitness business. We never pressure borrowers to accept offers, and you’re free to choose a different lender if you prefer.
Here’s what gym owners say about working with Redline Capital:
Submit 4 months of bank statements and we’ll email you multiple revenue-based financing offers that can fund as quickly as today or tomorrow.
2. Traditional Bank Loans
Traditional bank loans offer the lowest interest rates you’ll find, typically ranging from 4% to 8% APR, making them attractive for gym owners and fitness business entrepreneurs who can qualify and have time to wait for approval.
However, banks have extremely strict requirements for gym financing. They typically want to see excellent credit history (720+) and extensive financial documentation, including profit and loss statements, tax returns, balance sheets, and financial projections. Banks often require collateral, such as gym equipment or personal guarantees from business owners, and they prefer gyms and fitness centers with several years of profitability.
The approval process usually takes 60 to 90 days, and the average approval rate for small business bank loans sits at just 13%. For fitness businesses specifically, this number is even lower due to banks’ perception of the fitness industry as high risk.
When bank loans make sense: If you have strong financials, excellent credit history, significant collateral, and can wait months for approval, bank loans offer the best long-term, lower interest rates. They’re most suitable for well-established fitness centers and existing business operators with predictable cash flow and time to spare.
When they don’t: Most gym owners and fitness entrepreneurs who need money fast simply don’t qualify or can’t wait. If you need to make payroll, hire personal trainers, replace broken treadmills and equipment, or fund a time-sensitive expansion opportunity, banks aren’t going to solve your immediate problem.
3. SBA Loans
Small Business Administration loans are partially guaranteed by the government, which lets lenders offer lower interest rates and more flexible terms than conventional loans. Rates typically range from 6% to 13%, making them attractive for qualifying gym owners and fitness business operators.
The most relevant SBA loan programs for gyms and fitness centers include SBA 7(a) loans for working capital and equipment financing, and SBA 504 loans for real estate purchases or major facility improvements.
However, SBA loans require even more paperwork than traditional bank loans and often take 60 to 90 days to process. Gym owners will need to meet strict eligibility requirements and provide extensive documentation about their fitness business operations, financial projections, credit history, and intended use of funds.
These long waiting times mean that if the bank finds a problem with your application 60 or 90 days into underwriting, it can lead to frustrating last-minute rejections after months of waiting.
When SBA loans work: They can be excellent for gym owners and fitness entrepreneurs who are planning ahead for major equipment purchases, covering startup costs for a new gym or facility expansion, and have time to navigate the process. The lower interest rates can save significant money over the loan term.
When they don’t: If you need to bridge cash flow gaps, replace treadmills and equipment quickly, hire personal trainers, or pay for urgent operational expenses, SBA loans aren’t practical due to their lengthy approval process.
4. Equipment Financing
Equipment financing lets gym owners purchase fitness equipment, treadmills, sound systems, or facility improvements using the equipment itself as collateral. Since the equipment secures the loan, lenders typically offer competitive lower interest rates and terms up to 7 years.
This loan type can work well for fitness businesses and fitness centers because fitness equipment holds its value relatively well, and lenders understand its role in generating revenue. Monthly payments are often structured to align with the equipment’s useful life and revenue-generating potential.
However, the equipment financing process involves appraisals, vendor quotes, and documentation that can take several weeks to complete. Gym owners and fitness entrepreneurs are also limited to using the funds specifically for equipment purchases, and risk losing essential equipment if they can’t make payments.
When equipment financing makes sense: If you need specific fitness equipment such as treadmills or cardio machines, have time for the approval process, and are comfortable using the equipment as collateral. It’s particularly useful for major purchases by both new gym startups looking to cover startup costs and existing business operators upgrading their fitness center.
Limitations: The approval process can be slow, funds are restricted to equipment purchases only, and you risk losing essential gym equipment if you default.
5. Lines of Credit
Business lines of credit provide flexible access to funds without reapplying each time a gym or fitness business needs capital. Unlike regular lump sum loans, business owners don’t pay interest on the entire credit limit, only on the amount they actually use.
At Redline Capital, we offer lines of credit up to $750,000 that can close within 24 to 48 hours. This makes them particularly practical for fitness businesses and fitness centers that face seasonal fluctuations or need ongoing access to capital for equipment maintenance, hiring personal trainers and staff, marketing campaigns, or operational expenses.
The advantage of business lines of credit is that gym owners have ongoing access to funds as their fitness business operates, rather than getting a lump sum and then having to reapply later. This flexibility is valuable for managing the ups and downs of gym membership revenue.
When lines of credit work best: For ongoing operational needs like equipment maintenance, seasonal marketing campaigns, hiring personal trainers, or bridging gaps between membership billing cycles. They’re ideal when fitness business owners need flexibility rather than a large lump sum.
Limitations: Credit limits may be too small for major equipment purchases or facility renovations, and carrying balances long-term can result in higher overall costs than term loans.
6. Merchant Cash Advances
Merchant cash advances provide fast funding in exchange for a percentage of your gym’s future credit card sales. Since many gyms and fitness centers process significant credit card volume through membership fees and personal training payments, MCAs can be a viable funding option for quick capital.
The main advantage is speed. Many MCA providers can fund within 3 to 5 days with minimal paperwork. Approval is based primarily on your credit card processing volume rather than credit history or financial projections.
However, MCAs are typically expensive, with factor rates ranging from 1.2 to 1.5, which can translate to APRs over 40% when annualized. Daily or weekly repayments are automatically deducted from your merchant account, which can create cash flow challenges for fitness businesses during slow periods.
When MCAs might work: If your fitness center needs funds immediately, has strong credit card sales volume from personal trainers and memberships, and can handle the higher cost of capital for short-term needs.
Why we typically recommend alternatives: The high cost and daily repayment structure can create cash flow problems for gyms and fitness businesses. Revenue-based financing through Redline Capital often provides similar speed with lower interest rates and more flexible terms.
Read more: 10 Merchant Cash Advance Alternatives & How to Choose
7. Bridge Loans
Bridge loans provide short-term financing to help gyms and fitness businesses transition between longer-term funding solutions or capitalize on time-sensitive opportunities. They’re typically used for situations like covering startup costs for a new gym while waiting for SBA loan approval, or funding fitness center improvements before a refinance.
These loans usually have terms of 6 to 24 months and can fund relatively quickly since they’re designed for temporary needs. However, they typically come with higher interest rates than traditional loans because they’re meant to be short-term solutions.
When bridge loans make sense: If you have a specific short-term need and a clear plan for longer-term financing. For example, purchasing treadmills and equipment at a discount while your SBA loan is being processed, or funding renovations before a membership drive at your fitness center.
Limitations: Higher interest rates than long-term options, and gym owners and fitness entrepreneurs need a clear exit strategy for repayment or refinancing.
Frequently Asked Questions
What types of expenses can gym business loans cover?
Gym business loans can typically be used for equipment purchases, including treadmills and cardio machines, facility renovations, working capital, payroll, hiring personal trainers and staff, rent, insurance, marketing campaigns, software subscriptions, and general operational expenses. Revenue-based financing from Redline Capital places no restrictions on how fitness business owners use the funds.
How much can my gym qualify for?
With revenue-based financing, gym owners can typically qualify for up to 200% of their monthly revenue. For example, if your fitness center generates $50,000 per month, you might qualify for up to $100,000 in financing. Traditional banks usually lend much less relative to revenue and focus more on collateral, credit history, and financial projections.
Can I qualify with bad credit?
Yes, with revenue-based financing from Redline Capital, gym owners and fitness entrepreneurs can qualify with credit scores as low as 600. Since we focus primarily on your fitness business revenue rather than personal savings or credit history, we can work with gym owners who might not qualify for traditional bank loans due to credit challenges.
How quickly can I get funded?
With Redline Capital, gym owners can receive funding on the same day they apply. We’ve helped fitness business owners get funded in as little as 4 hours for urgent needs. Traditional banks typically take 60 to 90 days, while SBA loans can take even longer.
Do I need collateral?
No, Redline Capital’s revenue-based financing is unsecured, meaning gym owners and fitness entrepreneurs don’t need to put up treadmills, fitness equipment, real estate, or other business assets as collateral. This reduces your risk compared to secured loans, where you could lose essential fitness center assets if you can’t repay.
Secure Fast Funding for Your Gym with Redline Capital
If your fitness business generates at least $30,000 per month in revenue and you need funding fast, we can typically get you multiple offers within hours and funding the same day. The application takes just minutes, and you’re under no obligation to accept any offer we secure for you.
Submit a four-month bank statement and we’ll send you multiple competitive gym financing offers that can fund as early as today or tomorrow.